Canada Goose, which recently hired its first creative director to reshape its product portfolio and elevate its creative aesthetic, reported a 31 percent improvement in Q4 operating income to C$7.6 million (€5.1m) against a C$10.0 million loss in the year-ago period. Net income attributable to shareholders was C$5.0 million. Gross margin expanded by 20 basis points to 65.1 percent. Year-over-year inventories fell by 5.8 percent to C$445.2 million.
| Canada Goose - Income (CAD million) | |||
|---|---|---|---|
| 2024 | 2023 | Change | |
| Q4 | |||
| Revenue | 358.0 | 293.2 | 22.1% |
| Cost of sales | 125.0 | 102.9 | 21.5% |
| Gross profit | 233.0 | 190.3 | 22.4% |
| SG&A expenses | 209.9 | 172.7 | 21.5% |
| Operating income | 23.1 | 17.6 | 31.3% |
| Net interest, finance and other costs | 5.9 | 22.2 | -73.4% |
| Pre-tax | 17.2 | -4.6 | – |
| Tax | 9.6 | 5.4 | 77.8% |
| Net income | 7.6 | -10.0 | – |
| Diluted EPS | 0.05 | -0.03 | – |
| Full year | |||
| Revenue | 1,333.8 | 1,217.0 | 9.6% |
| Cost of sales | 416.4 | 401.8 | 3.6% |
| Gross profit | 917.4 | 815.2 | 12.5% |
| SG&A expenses | 792.9 | 667.6 | 18.8% |
| Operating income | 124.5 | 147.6 | -15.7% |
| Net interest, finance and other costs | 48.8 | 54.1 | -9.8% |
| Pre-tax | 75.7 | 93.5 | -19.0% |
| Tax | 17.6 | 24.6 | -28.5% |
| Net income | 58.1 | 68.9 | -15.7% |
| Diluted EPS | 0.57 | 0.69 | -17.4% |
| Source: Canada Goose | |||
Total Q4 revenues increased by 22 percent to C$358.0 million (€241.8m), fueled by 19 percent constant-currency growth in the DTC channel to C$271.5 million (€183.3m) that was sparked by gains in the Asia-Pacific and North American markets. Wholesale revenues, meanwhile, tumbled by 9 percent to C$41.4 million (€28.0m). Regionally, constant-currency sales declined by 2.7 percent in the EMEA to C$57.3 million (€38.7), fell 32.0 percent in Greater China to C$128.4 million (€86.7m) and increased by 24.2 percent in North America to C$152.8 million (€103.2m).
For the 12 months that ended March 31, the Canadian group realized stronger DTC sales but lower wholesale revenues. FY24 operating income slipped by 16 percent year-over-year to C$124.5 million (€84.1m). Profit attributable to shareholders plummeted by 20 percent to C$58.4 million (€39.5m). The group’s total annual revenues increased 10 percent to C$1,333.8 million (€901.3m), bolstered by 18 percent DTC growth to C$950.7 million (€642.0m). FY24 wholesale revenues sunk by 19 percent.
| Canada Goose - Revenue | ||||
|---|---|---|---|---|
| Q4 (CAD million) | ||||
| 2024 | 2023 | Change | ||
| By segment | ||||
| DTC | 271.5 | 227.5 | 19.3% | |
| Wholesale | 41.4 | 45.5 | -9.0% | |
| Other | 45.1 | 20.2 | 123.3% | |
| Total | 358.0 | 293.2 | 22.1% | |
| By region | ||||
| North America | 152.8 | 122.7 | 24.5% | |
| Canada | 70.0 | 55.2 | 26.8% | |
| US | 82.8 | 67.5 | 22.7% | |
| Asia-Pacific | 147.9 | 114.1 | 29.6% | |
| Greater China | 128.4 | 99.0 | 29.7% | |
| Asia-Pacific (China excl.) | 19.5 | 15.1 | 29.1% | |
| EMEA | 57.3 | 56.4 | 1.6% | |
| Total | 358.0 | 293.2 | 22.1% | |
| Source: Canada Goose | ||||
The company has key initiatives planned for FY25, most notably strengthening its retail execution and further expanding its product portfolio beyond its iconic parka. The current FY25 outlook calls for low-single-digit sales growth, an approximate 20 percent drop in year-over-year wholesale revenues, a flat gross margin and an average mid-single-digit price increase. Additionally, Canada Goose intends to slow its pace of investment in new stores and optimize working capital via active inventory management.
